Volkswagen and JAC teaming up to build new EV plant in China

Volkswagen and JAC are teaming up to build a new EV plant in China. Image: AFP

German automaker Volkswagen AG's joint venture with China's Anhui Jianghuai Automobile Co (JAC) plans to invest 5.06bn yuan (roughly R10.9bn) in a new electric car factory in the eastern Chinese city of Hefei, according to local authorities.

A document posted online by the Hefei Economic and Technological Development Area on Monday showed that Volkswagen and JAC had obtained approval from environmental authorities to build a plant capable of producing 100,000 all-electric battery cars a year.

Volkswagen Group China was not immediately able to comment. A spokesperson for the joint venture confirmed plans for the plant, saying the approval represented an "orderly advancement of the project", adding the venture's first electric model, the E20X, will be launched this year.

The German company, which is China’s largest foreign automaker, has pledged to rapidly ramp up production of zero-emission vehicles as part of its growth strategy in China.